The Fred Report – Special Research – How Utilities Fare In a Rising Rate Environment Relative to Bonds

This special research article by Fred Meissner, CMT, examines whether utilities and dividend-paying stocks preserve purchasing power and principal better than bonds during rising rate environments. By comparing the Dow Utilities and Moody’s AAA Bond Yields decade-by-decade from 1929 through 2015, the analysis reveals that utilities ultimately follow the broader secular trends of the stock market. While the historical data does not provide a rigid set of rules for timing dividend stocks, it does demonstrate that utilities have, overall, been a better bet than bonds.

For full report – How Utilities Fare In a Rising Rate Environment Relative to Bonds